Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Entity File Number | 001-33368 | |
Entity Registrant Name | Glu Mobile Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-2143667 | |
Entity Address, Address Line One | 875 Howard Street, Suite 100 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 415 | |
Local Phone Number | 800-6100 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | GLUU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 170,853,481 | |
Entity Central Index Key | 0001366246 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 283,057 | $ 127,053 |
Accounts receivable, net | 64,658 | 29,304 |
Prepaid royalties | 17,633 | 15,347 |
Deferred royalties | 9,489 | 5,067 |
Deferred platform commission fees | 43,619 | 29,239 |
Prepaid expenses and other assets | 18,125 | 8,629 |
Total current assets | 436,581 | 214,639 |
Property and equipment, net | 17,779 | 17,643 |
Operating lease right of use assets | 33,553 | 35,170 |
Long-term prepaid royalties | 22,100 | 26,879 |
Other long-term assets | 2,738 | 2,733 |
Intangible assets, net | 2,983 | 4,758 |
Goodwill | 116,227 | 116,227 |
Total assets | 631,961 | 418,049 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 27,331 | 17,535 |
Accrued compensation | 15,752 | 11,260 |
Accrued royalties | 15,987 | 20,802 |
Short-term operating lease liabilities | 4,434 | 3,528 |
Deferred revenue | 145,498 | 97,629 |
Total current liabilities | 209,002 | 150,754 |
Long-term accrued royalties | 20,783 | 26,842 |
Long-term operating lease liabilities | 36,877 | 37,351 |
Other long-term liabilities | 325 | 15 |
Total liabilities | 266,987 | 214,962 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized at June 30, 2020 and December 31, 2019; no shares issued and outstanding at June 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.0001 par value; 250,000 shares authorized at June 30, 2020 and December 31, 2019; 170,709 and 147,778 shares issued and outstanding at June 30, 2020 and December 31, 2019 | 17 | 15 |
Additional paid-in capital | 813,468 | 634,721 |
Accumulated other comprehensive loss | (60) | (37) |
Accumulated deficit | (448,451) | (431,612) |
Total stockholders' equity | 364,974 | 203,087 |
Total liabilities and stockholders' equity | $ 631,961 | $ 418,049 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 170,709 | 147,778 |
Common stock, shares outstanding | 170,709 | 147,778 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Revenue | $ 133,316 | $ 95,540 | $ 240,590 | $ 191,425 |
Cost of revenue: | ||||
Platform commissions, royalties and other | 46,727 | 32,806 | 83,701 | 66,076 |
Amortization of intangible assets | 887 | 1,056 | 1,775 | 2,308 |
Total cost of revenue | 47,614 | 33,862 | 85,476 | 68,384 |
Gross profit | 85,702 | 61,678 | 155,114 | 123,041 |
Operating expenses: | ||||
Research and development | 28,420 | 19,736 | 57,951 | 46,282 |
Sales and marketing | 65,203 | 35,040 | 107,946 | 63,145 |
General and administrative | 7,266 | 4,951 | 13,933 | 11,586 |
Total operating expenses | 100,889 | 59,727 | 179,830 | 121,013 |
Income/(loss) from operations | (15,187) | 1,951 | (24,716) | 2,028 |
Interest and other income, net | 434 | 556 | 369 | 1,320 |
Income/(loss) before income taxes | (14,753) | 2,507 | (24,347) | 3,348 |
Income tax benefit/(provision) | 6,187 | 0 | 7,508 | (178) |
Net income/(loss) | $ (8,566) | $ 2,507 | $ (16,839) | $ 3,170 |
Net income/(loss) per common share - basic | $ (0.05) | $ 0.02 | $ (0.11) | $ 0.02 |
Net income/(loss) per common share - diluted | $ (0.05) | $ 0.02 | $ (0.11) | $ 0.02 |
Weighted average common shares outstanding: | ||||
Basic | 156,583 | 145,451 | 153,106 | 144,951 |
Diluted | 156,583 | 159,682 | 153,106 | 159,556 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) | ||||
Net income/(loss) | $ (8,566) | $ 2,507 | $ (16,839) | $ 3,170 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (30) | (23) | (15) | |
Other comprehensive income/(loss) | (30) | (23) | (15) | |
Comprehensive income/(loss) | $ (8,566) | $ 2,477 | $ (16,862) | $ 3,155 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2018 | $ 14 | $ 617,781 | $ 1 | $ (440,483) | $ 177,313 |
Beginning balances (in shares) at Dec. 31, 2018 | 143,870 | ||||
Net income (loss) | 663 | 663 | |||
Stock-based compensation expense | 6,807 | 6,807 | |||
Issuance of common stock upon exercise of stock options | 1,313 | 1,313 | |||
Issuance of common stock upon exercise of stock options (in shares) | 468 | ||||
Taxes paid related to net share settlement of equity awards | $ 1 | (3,957) | (3,956) | ||
Taxes paid related to net share settlement of equity awards (in shares) | 560 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,665 | 1,665 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 278 | ||||
Other comprehensive income (loss) | 15 | 15 | |||
Ending balance at Mar. 31, 2019 | $ 15 | 623,609 | 16 | (439,820) | 183,820 |
Ending balances (in shares) at Mar. 31, 2019 | 145,176 | ||||
Beginning balance at Dec. 31, 2018 | $ 14 | 617,781 | 1 | (440,483) | 177,313 |
Beginning balances (in shares) at Dec. 31, 2018 | 143,870 | ||||
Net income (loss) | 3,170 | ||||
Other comprehensive income (loss) | (15) | ||||
Ending balance at Jun. 30, 2019 | $ 15 | 623,652 | (14) | (437,313) | 186,340 |
Ending balances (in shares) at Jun. 30, 2019 | 145,784 | ||||
Beginning balance at Mar. 31, 2019 | $ 15 | 623,609 | 16 | (439,820) | 183,820 |
Beginning balances (in shares) at Mar. 31, 2019 | 145,176 | ||||
Net income (loss) | 2,507 | 2,507 | |||
Stock-based compensation expense | 2,035 | 2,035 | |||
Issuance of common stock upon exercise of stock options | 469 | 469 | |||
Issuance of common stock upon exercise of stock options (in shares) | 209 | ||||
Taxes paid related to net share settlement of equity awards | (2,461) | (2,461) | |||
Taxes paid related to net share settlement of equity awards (in shares) | 399 | ||||
Other comprehensive income (loss) | (30) | (30) | |||
Ending balance at Jun. 30, 2019 | $ 15 | 623,652 | (14) | (437,313) | 186,340 |
Ending balances (in shares) at Jun. 30, 2019 | 145,784 | ||||
Beginning balance at Dec. 31, 2019 | $ 15 | 634,721 | (37) | (431,612) | 203,087 |
Beginning balances (in shares) at Dec. 31, 2019 | 147,778 | ||||
Net income (loss) | (8,273) | (8,273) | |||
Stock-based compensation expense | 6,238 | 6,238 | |||
Issuance of common stock upon exercise of stock options | 9,526 | 9,526 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,921 | ||||
Issuance of common stock upon exercise of warrants (in shares) | 115 | ||||
Taxes paid related to net share settlement of equity awards | (1,720) | (1,720) | |||
Taxes paid related to net share settlement of equity awards (in shares) | 320 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,705 | 1,705 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 450 | ||||
Other comprehensive income (loss) | (23) | (23) | |||
Ending balance at Mar. 31, 2020 | $ 15 | 650,470 | (60) | (439,885) | 210,540 |
Ending balances (in shares) at Mar. 31, 2020 | 151,584 | ||||
Beginning balance at Dec. 31, 2019 | $ 15 | 634,721 | (37) | (431,612) | 203,087 |
Beginning balances (in shares) at Dec. 31, 2019 | 147,778 | ||||
Net income (loss) | (16,839) | ||||
Other comprehensive income (loss) | (23) | ||||
Ending balance at Jun. 30, 2020 | $ 17 | 813,468 | (60) | (448,451) | 364,974 |
Ending balances (in shares) at Jun. 30, 2020 | 170,709 | ||||
Beginning balance at Mar. 31, 2020 | $ 15 | 650,470 | (60) | (439,885) | 210,540 |
Beginning balances (in shares) at Mar. 31, 2020 | 151,584 | ||||
Net income (loss) | (8,566) | (8,566) | |||
Stock-based compensation expense | 7,620 | 7,620 | |||
Issuance of common stock upon exercise of stock options | 5,347 | 5,347 | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,464 | ||||
Taxes paid related to net share settlement of equity awards | (1,740) | (1,740) | |||
Taxes paid related to net share settlement of equity awards (in shares) | 411 | ||||
Issuance of common stock upon follow-on public offering, net of issuance costs | $ 2 | 151,771 | 151,773 | ||
Issuance of common stock upon follow-on public offering, net of issuance costs (in shares) | 17,250 | ||||
Ending balance at Jun. 30, 2020 | $ 17 | $ 813,468 | $ (60) | $ (448,451) | $ 364,974 |
Ending balances (in shares) at Jun. 30, 2020 | 170,709 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income/(loss) | $ (16,839) | $ 3,170 |
Adjustments to reconcile net income/(loss) to net cash used in operating activities: | ||
Stock-based compensation | 14,488 | 8,842 |
Depreciation | 2,709 | 2,088 |
Non-cash lease expense | 2,013 | 1,409 |
Amortization of intangible assets | 1,775 | 2,308 |
Other non-cash adjustments | 225 | 448 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (35,310) | (12,782) |
Prepaid royalties | (6,562) | (578) |
Deferred royalties | (4,422) | (475) |
Deferred platform commission fees | (14,380) | (752) |
Prepaid expenses and other assets | (9,599) | 70 |
Accounts payable and other accrued liabilities | 12,052 | 13,648 |
Accrued compensation | 4,492 | (10,367) |
Accrued royalties | (1,962) | (1,760) |
Deferred revenue | 47,869 | 3,084 |
Other long-term liabilities | 310 | 12 |
Operating lease liabilities | 134 | (1,476) |
Net cash generated from/(used in) operating activities | (3,007) | 6,889 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (5,733) | (2,127) |
Other investing activities | (155) | |
Net cash used in investing activities | (5,733) | (2,282) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and purchases under the ESPP | 16,578 | 3,447 |
Proceeds from follow-on public offering, net of issuance costs | 151,773 | |
Taxes paid related to net share settlement of equity awards | (3,460) | (6,417) |
Net cash provided by/(used in) financing activities | 164,891 | (2,970) |
Effect of exchange rate changes on cash | (147) | (83) |
Net increase in cash, cash equivalents and restricted cash | 156,004 | 1,554 |
Cash, cash equivalents and restricted cash at beginning of period | 127,053 | 97,944 |
Cash, cash equivalents at end of period | 283,057 | 99,498 |
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Cash, cash equivalents and restricted cash | $ 283,057 | $ 99,498 |
The Company, Basis of Presentat
The Company, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | Note 1 — The Company, Basis of Presentation and Summary of Significant Accounting Policies Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in the state of Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops, publishes, and markets a portfolio of games designed for users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store and others (“Digital Storefronts”). The Company creates games based on its own original brands, as well as third-party licensed brands, properties and other content . Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of June 30, 2020 and its condensed consolidated results of operations for the three and six months ended June 30, 2020 and 2019, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The condensed consolidated balance sheet presented as of December 31, 2019 has been derived from the audited consolidated financial statements as of that date, and the condensed consolidated balance sheet presented as of June 30, 2020 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not materially affect revenue, operating income/(loss), net income/(loss), cash flows, total assets, total liabilities or stockholders’ equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates and assumptions reflected in the unaudited condensed consolidated financial statements include, but are not limited to, estimation of the average playing period of paying users associated with durable virtual items, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, valuation and realizability of deferred tax assets and uncertain tax positions, fair value of stock awards issued, fair value of warrants issued, accounting for business combinations, evaluating goodwill, long-lived assets for impairment, and realization of prepaid royalties and fair value of investments. Actual results may differ from these estimates due to risks and uncertainties, and these differences may be material, including uncertainty in the current economic environment due to the novel strain of coronavirus, SARS-CoV-2 (“COVID-19”) pandemic. Management will continue to actively monitor the impact of the COVID-19 pandemic on the Company’s assumptions and estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers located worldwide. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers in excess of 10% of the Company’s revenue: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Apple 55.5 % 52.6 % 56.4 % 52.8 % Google 32.7 % 34.6 % 32.3 % 34.4 % At June 30, 2020, Apple Inc. (“Apple”) and Google Inc. (“Google”) accounted for 66.1% and 20.4%, respectively, of total accounts receivable. At December 31, 2019, Apple, Google, and Tapjoy Inc. (“Tapjoy”) accounted for 47.2%, 28.5%, and 17.8%, respectively, of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in earlier recognition of credit losses. The ASU requires a cumulative-effect adjustment to retained earnings transition approach and is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Net Income_(Loss) Per Share
Net Income/(Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Net Income/(Loss) Per Share | |
Net Income/(Loss) Per Share | Note 2 — Net Income/(Loss) Per Share The Company computes basic net income/(loss) per share by dividing its net income/(loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share for the three and six months ended June 30, 2020 has been computed by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents as their effect would have been antidilutive. Diluted net income per share for the three and six months ended June 30, 2019 is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potentially dilutive common stock instruments. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income/(loss) $ (8,566) $ 2,507 $ (16,839) $ 3,170 Shares used to compute net income/(loss) per share: Weighted average shares used to compute basic net income/(loss) per share 156,583 145,451 153,106 144,951 Dilutive potential common shares — 14,231 — 14,605 Weighted average shares used to compute diluted net income/(loss) per share 156,583 159,682 153,106 159,556 Basic net income/(loss) per share $ (0.05) $ 0.02 $ (0.11) $ 0.02 Diluted net income/(loss) per share $ (0.05) $ 0.02 $ (0.11) $ 0.02 The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net income/(loss) per share of common stock for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Warrants to purchase common stock 1,125 — 1,125 — Options to purchase common stock 12,751 579 12,751 579 Restricted stock units ("RSUs") 5,889 8 5,889 8 Performance stock options ("PSOs") 2,800 3,382 2,800 3,382 Performance stock units ("PSUs") — 2,972 — 2,972 Employee stock purchase plan ("ESPP") 358 — 358 — Total 22,923 6,941 22,923 6,941 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 3 — Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2020 and June 30, 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 In-App Purchases (over-time revenue recognition) $ 116,907 $ 82,659 $ 212,846 $ 166,203 Advertisements and offers (point-in-time revenue recognition) 16,374 12,864 27,703 25,194 Other (point-in-time revenue recognition) 35 17 41 28 Total revenue $ 133,316 $ 95,540 $ 240,590 $ 191,425 The Company operates in a single reportable segment. In the table above, revenue is disaggregated by type of revenue stream, indicating whether it is recognized over-time or at a point-in-time. Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers: June 30, 2020 December 31, 2019 Receivables, which are included in accounts receivable, net $ 64,658 $ 29,304 Contract liabilities, which are included in deferred revenue 145,498 97,629 The Company receives payments from customers based on billing terms established in the Company’s contracts. Contract assets relate to the Company’s right to consideration for its completed performance under the contract before the customer pays consideration or before payment is due. At June 30, 2020 and December 31, 2019, there were no contract assets recorded in the Company’s condensed consolidated balance sheets. Accounts receivable are recorded when the right to consideration becomes unconditional. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as the Company performs under the contract. The Company had $97,629 in deferred revenue as of December 31, 2019, of which $24,604 and $96,371 was recognized as revenue in the three and six months ended June 30, 2020, respectively. The Company had $85,736 in deferred revenue as of December 31, 2018, of which $21,914 and $84,612 was recognized as revenue in the three and six months ended June 30, 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4 — Fair Value Measurements Fair Value Measurements The Company accounts for fair value in accordance with Accounting Standard Codification 820, Fair Value Measurements and Disclosures Level 1 Level 2 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial assets as of June 30, 2020 are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 June 30, 2020 Financial Assets Cash and cash equivalents $ 283,057 $ — $ — $ 283,057 Other investments — — 1,565 1,565 Total financial assets $ 283,057 $ — $ 1,565 $ 284,622 The Company’s financial assets as of December 31, 2019 are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 December 31, 2019 Financial Assets Cash and cash equivalents $ 127,053 $ — $ — $ 127,053 Other investments — — 1,565 1,565 Total financial assets $ 127,053 $ — $ 1,565 $ 128,618 The Company’s cash and cash equivalents, which were held in operating bank and money market accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected payment or receipt of cash. The carrying value of other investments approximates fair value, and there are no unrealized gains or losses, as there have been no events or changes in circumstances that would have had a significant effect on the fair value of these investments at June 30, 2020 and December 31, 2019. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Components | |
Balance Sheet Components | Note 5 — Balance Sheet Components Accounts Receivable, net June 30, December 31, 2020 2019 Accounts receivable $ 64,658 $ 29,304 Less: Allowance for doubtful accounts — — Accounts receivable, net $ 64,658 $ 29,304 Accounts receivable includes amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions paid to the Digital Storefronts. The Company had no bad debts during the three and six months ended June 30, 2020 and 2019. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets Intangible Assets The Company’s intangible assets were acquired primarily in various acquisitions as well as in connection with the purchase of certain trademarks, brand assets and licensed content. The carrying amounts and accumulated amortization expense of the acquired intangible assets at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 December 31, 2019 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (18,134) $ 2,983 $ 21,117 $ (16,359) $ 4,758 Customer contracts and related relationships 5 yrs 700 (700) — 700 (700) — Trademarks 7 yrs 5,000 (5,000) — 5,000 (5,000) — $ 26,817 $ (23,834) $ 2,983 $ 26,817 $ (22,059) $ 4,758 Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated useful lives, which approximate the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenue. During the three months ended June 30, 2020 and 2019, the Company recorded amortization expense in cost of revenue of $887 and $1,056, respectively. During the six months ended June 30, 2020 and 2019, the Company recorded amortization expense in cost of revenue of $1,775 and $2,308, respectively. As of June 30, 2020, total expected future amortization related to intangible assets was as follows: Amortization to Be Included in Cost of Year Ending December 31, Revenue 2020 (remaining 6 months) $ 1,483 2021 1,500 Total intangible assets $ 2,983 Goodwill The Company had $116,227 in goodwill as of June 30, 2020 and December 31, 2019, respectively. There were no indicators of impairment as of June 30, 2020. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Leases | Note 7 – Leases The Company currently leases real estate space under non-cancelable operating lease agreements for its corporate headquarters in San Francisco, California and its operations in Toronto, Canada, Hyderabad, India, Foster City, California, Burlingame, California and Orlando, Florida. These operating leases have remaining lease terms ranging from 5 months to 7.42 years, some of which include the option to extend The Company does not include any of its renewal options when calculating its lease liability as the Company is not reasonably certain whether it will exercise these renewal options at this time. Rent expense for the three months ended June 30, 2020 and 2019 was $1,712 and $653, respectively. Rent expense for the six months ended June 30, 2020 and 2019 was $2,883 and $2,004, respectively. Operating Year Ending December 31, Leases 2020 (remaining 6 months) 3,422 2021 7,104 2022 7,015 2023 6,980 2024 and thereafter 27,667 Total lease payments $ 52,188 Less: imputed interest (10,877) Total $ 41,311 June 30, 2020 Weighted average remaining lease term 7.06 yrs Weighted average discount rate 6.7 % Six Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 1,320 Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 73 $ 407 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8 — Commitments and Contingencies Minimum Guaranteed Royalties and Developer Commitments The Company has entered into license and publishing agreements with various celebrities, athletes, sports and entertainment organizations, and other well-known brands and properties At June 30, 2020, future unpaid minimum guaranteed royalty commitments were as follows: Future Minimum Guarantee Year Ending December 31, Commitments 2020 (remaining 6 months) $ 2,660 2021 10,829 2022 6,855 2023 6,690 2024 6,150 $ 33,184 The amounts represented in the table above reflect the Company’s minimum cash obligations for the respective calendar years, but do not necessarily represent the periods in which they will be expensed in the Company’s unaudited condensed consolidated financial statements. Licensor commitments include $31,238 of commitments due to licensors that have been recorded in current and long-term liabilities and a corresponding amount in current and long-term assets because payment is not contingent upon performance by the licensor. The classification of commitments between long-term and short-term is determined based on the timing of expected recoupment of earned royalties calculated on projected revenue for the licensed intellectual property games. Indemnification Arrangements The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types and, accordingly, has Contingencies From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably possible to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 9 — Stockholders’ Equity Warrants to Purchase Common Stock Warrants outstanding at June 30, 2020 were as follows: Number Weighted of Shares Average Outstanding Exercise Average Under Price per Contractual Warrant Share Term (Years) Warrants outstanding, December 31, 2019 1,600 $ 4.61 5.44 Exercised (475) $ 4.99 5.00 Warrants outstanding, June 30, 2020 1,125 $ 4.46 5.44 No expenses with respect to these warrants were recognized during the three and six months ended June 30, 2020 and 2019. Follow-on Public Offering In June 2020, the Company completed a follow-on public offering of 17,250 shares of its common stock, which included an over-allotment option to purchase an additional 2,250 shares, at a public offering price of $9.25 per share (the “Offering”). The aggregate gross proceeds from the Offering, including the exercise of the over-allotment, were approximately $159,563, and net proceeds received after underwriting fees and offering expenses totalled approximately $151,773. The Company does not have specific uses of the net proceeds from the Offering but intends to use the net proceeds for working capital and other general corporate purposes, which may include potential acquisitions and strategic transactions. |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2020 | |
Stock Incentive Plans | |
Stock Incentive Plans | Note 10 — Stock Incentive Plans 2007 Equity Incentive Plan In April 2020, the Company’s Board of Directors approved, and in June 2020, the Company’s stockholders approved, the sixth Amended and Restated 2007 Equity Incentive Plan (the “Sixth Amended 2007 Plan”). The Sixth Amended 2007 Plan included an increase of 7,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan. Performance-based equity awards The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) has awarded PSOs and/or PSUs to the Company’s executives and certain other employees. These performance-based awards are subject to the achievement of specified annual performance goals. They become eligible to vest only if the applicable performance goals are achieved and will vest only if the grantee remains employed with the Company through each applicable vesting date. The number of shares that may vest depend on the extent to which the Company achieves the specified annual performance goals. The fair value of these awards is estimated on the date of grant. The PSOs have a contractual term of 10 years. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized, and any previously recognized expense is reversed. The expected cost is based on the awards that are probable to vest and is recognized over the service period. 2007 Employee Stock Purchase Plan In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved, the Amended and Restated 2007 Employee Stock Purchase Plan (the “Amended 2007 Purchase Plan”). The Amended 2007 Purchase Plan included an increase of 4,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan and removal of the expiration date of the plan. 2018 Equity Inducement Plan In April 2018, the Compensation Committee of the Company’s Board of Directors adopted the 2018 Equity Inducement Plan (the “2018 Plan”). The 2018 Plan replaced the Company’s 2008 Equity Inducement Plan that expired by its terms in March 2018, and is intended to augment the shares available for issuance under the Fourth Amended 2007 Plan. The Company did not seek stockholder approval for the 2018 Plan. As such, awards under the Inducement Plan will be granted in accordance with Nasdaq Listing Rule 5635(c)(4) and only to persons not previously considered an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with the Company. The Company initially reserved 400 shares of common stock for issuance under the 2018 Plan. RSU Activity A summary of the Company’s RSU activity for the six months ended June 30, 2020 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2019 3,951 $ 5.66 Granted 3,013 $ 6.40 Vested (885) $ 4.88 Forfeited (190) $ 5.78 Awarded and unvested, June 30, 2020 5,889 $ 6.15 1.73 $ 54,592 PSU Activity A summary of the Company’s PSU activity for the six months ended June 30, 2020 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2019 5,417 $ 6.06 Vested (276) $ 3.61 Forfeited (1,370) $ 6.85 Awarded and unvested, June 30, 2020 3,771 $ 5.95 1.24 $ 34,953 PSUs expected to vest at June 30, 2020 1,625 $ 5.56 0.63 $ 15,068 PSO Activity A summary of the Company’s PSO activity for the six months ended June 30, 2020 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2019 6,583 $ 4.54 Canceled (1,377) $ 6.18 Exercised (948) $ 3.61 Balance as of June 30, 2020 4,258 $ 4.21 7.53 $ 21,531 PSOs expected to vest at June 30, 2020 526 $ 3.60 7.35 $ 2,984 PSOs exercisable at June 30, 2020 2,800 $ 3.59 7.30 $ 15,892 Stock Option Activity The following table summarizes the Company’s stock option activity for the six months ended June 30, 2020: Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2019 16,288 $ 3.56 Options granted 210 $ 9.00 Options canceled (287) $ 5.35 Options exercised (3,460) $ 3.36 Balances at June 30, 2020 12,751 $ 3.66 6.98 $ 71,487 Options exercisable at June 30, 2020 8,619 $ 3.28 6.71 $ 51,668 The aggregate intrinsic value in the preceding table is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of the Company’s common stock on The Nasdaq Global Select Market of $9.27 per share as of June 30, 2020 (the last trading day in the quarter). Cash proceeds, net of taxes, from option exercises were $14,873 and $860 during the six months ended June 30, 2020 and 2019, respectively. Stock-Based Compensation The cost of RSUs and PSUs are determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. Compensation cost for stock options, RSUs and performance-based awards with a single vesting date is amortized ratably over the requisite service period. For performance-based awards that have multiple vesting dates, the compensation cost is recognized ratably over the requisite service period for each tranche, whereby each vesting tranche is treated as a separate award for determining the requisite service period. The compensation cost for performance-based awards may be adjusted over the vesting period based on interim estimates of performance against the pre-set financial performance measures. Under Accounting Standard Codification 718, Compensation-Stock Compensation Stock Options Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Dividend yield — % — % — % — % Risk-free interest rate 0.28 % 2.07 % 0.28 % 2.15 % Expected volatility 69.3 % 56.1 % 69.3 % 56.1 % Expected term (years) 4.00 4.00 4.00 4.00 The expected term of stock options gave consideration to early exercises, post-vesting cancellations and the options’ contractual term ranging from 6 to 10 years. The Company based its expected volatility on its own historical volatility. The Company did not grant any PSOs during the three and six months ended June 30, 2020 and 2019. The weighted-average fair value of stock options granted during the three and six months ended June 30, 2020 was $4.63 per share. The weighted-average fair value of stock options granted during the three and six months ended June 30, 2019 was $3.88 and $3.94 per share, respectively. The following table summarizes the consolidated stock-based compensation expense by line items in the condensed consolidated statement of operations: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ 5,298 $ 1,128 $ 9,260 $ 5,074 Sales and marketing 1,013 55 1,888 881 General and administrative 1,795 852 3,340 2,887 Total stock-based compensation expense $ 8,106 $ 2,035 $ 14,488 $ 8,842 (1) For the three and six months ended June 30, 2020, stock-based compensation expense recorded in research and development includes $486 and $630 from PSUs classified as liabilities. (2) Stock-based compensation expense for the three and six months ended June 30, 2019 included a reversal of previously accrued expense of $2,526 due to a decrease in the vesting probability of certain performance-based equity awards. The following table summarizes total compensation expense related to unvested awards not yet recognized as of June 30, 2020: Unrecognized Compensation Expense for Unvested Awards Stock options $ 8,276 RSUs 33,063 PSUs 7,048 PSOs 638 Total unrecognized compensation expense $ 49,025 (1) The unrecognized compensation expense for PSUs classified as equity and vesting in fiscal years 2022 and 2023, except for PSUs classified as liabilities, is excluded in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. The unrecognized compensation expense related to stock options and RSUs will be recognized over a weighted average period of 1.47 years and 3.30 years, respectively. The unrecognized compensation expense related to PSOs and PSUs, except for performance awards classified as equity and vesting in fiscal years 2022 and 2023, will be recognized over a weighted average period of 0.63 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 11 – Income Taxes The Company recorded an income tax benefit of $6,187 and $7,508 for the three and six months ended June 30, 2020, respectively, and an income tax expense of $0 and $178 for the three and six months ended June 30, 2019, respectively . The Company accounts for uncertain tax positions in accordance with Accounting Standards Codification 740, Income Taxes (“ASC 740”). As of June 30, 2020, and December 31, 2019, the total amount of unrecognized tax benefits was $16,440 and $15,084 , respectively. These unrecognized tax benefits are currently included in the Company’s deferred tax assets, which are subject to full valuation allowance. As such, these unrecognized tax benefits, if recognized, would not have an impact on the Company’s effective tax rate. The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, United States, Canada, and India. The Company’s federal tax returns are open by statute for tax years 1998 and forward and California tax returns are open by statute for tax years 2003 and forward and could be subject to examination by the tax authorities. The Company’s income tax returns in its international locations are open by statute for tax years 2012 and forward. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S. |
Segment Information and Operati
Segment Information and Operations by Geographic Area | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information and Operations by Geographic Area | |
Segment Information and Operations by Geographic Area | Note 12 — Segment Information and Operations by Geographic Area Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision making group, whose function is to allocate resources to and assess the performance of the operating segments. The Company has identified its Chief Executive Officer as the CODM. The Company operates in a single operating segment. The financial information reviewed by the CODM is included within one operating segment for purposes of allocating resources and evaluating financial performance. The following tables set forth revenue and long-lived assets based on geography: Revenue Revenue by geography is primarily based on the geographic location of the Company’s payers. International revenue is revenue generated from distributors and advertising service providers whose principal operations are located outside the United States or, in the case of the Digital Storefronts, the revenue generated from end-user purchases made outside of the United States. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 United States of America $ 104,377 $ 73,835 $ 188,385 $ 146,703 Americas, excluding the United States 7,827 5,979 14,447 12,197 EMEA 14,715 10,902 26,573 22,430 APAC 6,397 4,824 11,185 10,095 Total revenue $ 133,316 $ 95,540 $ 240,590 $ 191,425 Long-Lived Assets The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: June 30, December 31, 2020 2019 United States of America $ 16,812 $ 16,738 Rest of the World 967 905 Total $ 17,779 $ 17,643 |
The Company, Basis of Present_2
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of June 30, 2020 and its condensed consolidated results of operations for the three and six months ended June 30, 2020 and 2019, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The condensed consolidated balance sheet presented as of December 31, 2019 has been derived from the audited consolidated financial statements as of that date, and the condensed consolidated balance sheet presented as of June 30, 2020 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not materially affect revenue, operating income/(loss), net income/(loss), cash flows, total assets, total liabilities or stockholders’ equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates and assumptions reflected in the unaudited condensed consolidated financial statements include, but are not limited to, estimation of the average playing period of paying users associated with durable virtual items, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, valuation and realizability of deferred tax assets and uncertain tax positions, fair value of stock awards issued, fair value of warrants issued, accounting for business combinations, evaluating goodwill, long-lived assets for impairment, and realization of prepaid royalties and fair value of investments. Actual results may differ from these estimates due to risks and uncertainties, and these differences may be material, including uncertainty in the current economic environment due to the novel strain of coronavirus, SARS-CoV-2 (“COVID-19”) pandemic. Management will continue to actively monitor the impact of the COVID-19 pandemic on the Company’s assumptions and estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers located worldwide. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers in excess of 10% of the Company’s revenue: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Apple 55.5 % 52.6 % 56.4 % 52.8 % Google 32.7 % 34.6 % 32.3 % 34.4 % At June 30, 2020, Apple Inc. (“Apple”) and Google Inc. (“Google”) accounted for 66.1% and 20.4%, respectively, of total accounts receivable. At December 31, 2019, Apple, Google, and Tapjoy Inc. (“Tapjoy”) accounted for 47.2%, 28.5%, and 17.8%, respectively, of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in earlier recognition of credit losses. The ASU requires a cumulative-effect adjustment to retained earnings transition approach and is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
The Company, Basis of Present_3
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
Schedule of Revenue Concentration | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Apple 55.5 % 52.6 % 56.4 % 52.8 % Google 32.7 % 34.6 % 32.3 % 34.4 % |
Net Income_(Loss) Per Share (Ta
Net Income/(Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Net Income/(Loss) Per Share | |
Computation of Net Income/(Loss) Per Share | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income/(loss) $ (8,566) $ 2,507 $ (16,839) $ 3,170 Shares used to compute net income/(loss) per share: Weighted average shares used to compute basic net income/(loss) per share 156,583 145,451 153,106 144,951 Dilutive potential common shares — 14,231 — 14,605 Weighted average shares used to compute diluted net income/(loss) per share 156,583 159,682 153,106 159,556 Basic net income/(loss) per share $ (0.05) $ 0.02 $ (0.11) $ 0.02 Diluted net income/(loss) per share $ (0.05) $ 0.02 $ (0.11) $ 0.02 |
Schedule of Anti-Dilutive Securities Excluded from Computation of Net Income/(Loss) Per Share | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Warrants to purchase common stock 1,125 — 1,125 — Options to purchase common stock 12,751 579 12,751 579 Restricted stock units ("RSUs") 5,889 8 5,889 8 Performance stock options ("PSOs") 2,800 3,382 2,800 3,382 Performance stock units ("PSUs") — 2,972 — 2,972 Employee stock purchase plan ("ESPP") 358 — 358 — Total 22,923 6,941 22,923 6,941 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contracts with Customers | |
Summary of Revenue from Contracts with Customers | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 In-App Purchases (over-time revenue recognition) $ 116,907 $ 82,659 $ 212,846 $ 166,203 Advertisements and offers (point-in-time revenue recognition) 16,374 12,864 27,703 25,194 Other (point-in-time revenue recognition) 35 17 41 28 Total revenue $ 133,316 $ 95,540 $ 240,590 $ 191,425 |
Information on Receivables, contract assets and contract liabilities | June 30, 2020 December 31, 2019 Receivables, which are included in accounts receivable, net $ 64,658 $ 29,304 Contract liabilities, which are included in deferred revenue 145,498 97,629 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Schedule of Assets and Liabilities Presented at Fair Value | Level 1 Level 2 Level 3 June 30, 2020 Financial Assets Cash and cash equivalents $ 283,057 $ — $ — $ 283,057 Other investments — — 1,565 1,565 Total financial assets $ 283,057 $ — $ 1,565 $ 284,622 Level 1 Level 2 Level 3 December 31, 2019 Financial Assets Cash and cash equivalents $ 127,053 $ — $ — $ 127,053 Other investments — — 1,565 1,565 Total financial assets $ 127,053 $ — $ 1,565 $ 128,618 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Components | |
Schedule of Components of Accounts Receivable, net | June 30, December 31, 2020 2019 Accounts receivable $ 64,658 $ 29,304 Less: Allowance for doubtful accounts — — Accounts receivable, net $ 64,658 $ 29,304 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets | June 30, 2020 December 31, 2019 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (18,134) $ 2,983 $ 21,117 $ (16,359) $ 4,758 Customer contracts and related relationships 5 yrs 700 (700) — 700 (700) — Trademarks 7 yrs 5,000 (5,000) — 5,000 (5,000) — $ 26,817 $ (23,834) $ 2,983 $ 26,817 $ (22,059) $ 4,758 |
Schedule of Expected Amortization Related to Intangible Assets | Amortization to Be Included in Cost of Year Ending December 31, Revenue 2020 (remaining 6 months) $ 1,483 2021 1,500 Total intangible assets $ 2,983 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Schedule of future minimum lease payments | Operating Year Ending December 31, Leases 2020 (remaining 6 months) 3,422 2021 7,104 2022 7,015 2023 6,980 2024 and thereafter 27,667 Total lease payments $ 52,188 Less: imputed interest (10,877) Total $ 41,311 |
Supplemental Information Operating Cash Flows from Operating Leases | June 30, 2020 Weighted average remaining lease term 7.06 yrs Weighted average discount rate 6.7 % Six Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 1,320 Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 73 $ 407 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | |
Schedule of Future Minimum Guaranteed Royalty Commitments | Future Minimum Guarantee Year Ending December 31, Commitments 2020 (remaining 6 months) $ 2,660 2021 10,829 2022 6,855 2023 6,690 2024 6,150 $ 33,184 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity | |
Schedule of Warrants Outstanding | Number Weighted of Shares Average Outstanding Exercise Average Under Price per Contractual Warrant Share Term (Years) Warrants outstanding, December 31, 2019 1,600 $ 4.61 5.44 Exercised (475) $ 4.99 5.00 Warrants outstanding, June 30, 2020 1,125 $ 4.46 5.44 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Stock Option Activity | Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2019 16,288 $ 3.56 Options granted 210 $ 9.00 Options canceled (287) $ 5.35 Options exercised (3,460) $ 3.36 Balances at June 30, 2020 12,751 $ 3.66 6.98 $ 71,487 Options exercisable at June 30, 2020 8,619 $ 3.28 6.71 $ 51,668 |
Schedule of Assumptions Used to Estimate Fair Value of Options | Stock Options Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Dividend yield — % — % — % — % Risk-free interest rate 0.28 % 2.07 % 0.28 % 2.15 % Expected volatility 69.3 % 56.1 % 69.3 % 56.1 % Expected term (years) 4.00 4.00 4.00 4.00 |
Schedule of Stock-Based Compensation Expense by Line Item | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ 5,298 $ 1,128 $ 9,260 $ 5,074 Sales and marketing 1,013 55 1,888 881 General and administrative 1,795 852 3,340 2,887 Total stock-based compensation expense $ 8,106 $ 2,035 $ 14,488 $ 8,842 (1) For the three and six months ended June 30, 2020, stock-based compensation expense recorded in research and development includes $486 and $630 from PSUs classified as liabilities. (2) Stock-based compensation expense for the three and six months ended June 30, 2019 included a reversal of previously accrued expense of $2,526 due to a decrease in the vesting probability of certain performance-based equity awards. |
Schedule of compensation expense related to unvested awards | The following table summarizes total compensation expense related to unvested awards not yet recognized as of June 30, 2020: Unrecognized Compensation Expense for Unvested Awards Stock options $ 8,276 RSUs 33,063 PSUs 7,048 PSOs 638 Total unrecognized compensation expense $ 49,025 (1) The unrecognized compensation expense for PSUs classified as equity and vesting in fiscal years 2022 and 2023, except for PSUs classified as liabilities, is excluded in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. |
Restricted stock units ("RSUs") | |
Summary of Company's Performance-based Awards | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2019 3,951 $ 5.66 Granted 3,013 $ 6.40 Vested (885) $ 4.88 Forfeited (190) $ 5.78 Awarded and unvested, June 30, 2020 5,889 $ 6.15 1.73 $ 54,592 |
Performance stock units ("PSUs") | |
Summary of Company's Performance-based Awards | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2019 5,417 $ 6.06 Vested (276) $ 3.61 Forfeited (1,370) $ 6.85 Awarded and unvested, June 30, 2020 3,771 $ 5.95 1.24 $ 34,953 PSUs expected to vest at June 30, 2020 1,625 $ 5.56 0.63 $ 15,068 |
Performance stock options ("PSOs") | |
Summary of Stock Option Activity | Weighted Weighted Number of Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2019 6,583 $ 4.54 Canceled (1,377) $ 6.18 Exercised (948) $ 3.61 Balance as of June 30, 2020 4,258 $ 4.21 7.53 $ 21,531 PSOs expected to vest at June 30, 2020 526 $ 3.60 7.35 $ 2,984 PSOs exercisable at June 30, 2020 2,800 $ 3.59 7.30 $ 15,892 |
Segment Information and Opera_2
Segment Information and Operations by Geographic Area (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information and Operations by Geographic Area | |
Schedule of Revenues by Geographic Region | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 United States of America $ 104,377 $ 73,835 $ 188,385 $ 146,703 Americas, excluding the United States 7,827 5,979 14,447 12,197 EMEA 14,715 10,902 26,573 22,430 APAC 6,397 4,824 11,185 10,095 Total revenue $ 133,316 $ 95,540 $ 240,590 $ 191,425 |
Schedule of Long-Lived Assets by Geographic Location | June 30, December 31, 2020 2019 United States of America $ 16,812 $ 16,738 Rest of the World 967 905 Total $ 17,779 $ 17,643 |
The Company, Basis of Present_4
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risks (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenues from customers | Apple | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 55.5 | 52.6 | 56.4 | 52.8 | |
Revenues from customers | Google | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 32.7 | 34.6 | 32.3 | 34.4 | |
Accounts Receivable | Customer Concentration Risk | Apple | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 66.1 | 47.2 | |||
Accounts Receivable | Customer Concentration Risk | Google | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 20.4 | 28.5 | |||
Accounts Receivable | Customer Concentration Risk | Tapjoy | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 17.8 |
Net Income_(Loss) Per Share - B
Net Income/(Loss) Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Net income/(loss) | $ (8,566) | $ (8,273) | $ 2,507 | $ 663 | $ (16,839) | $ 3,170 |
Shares used to compute net income/(loss) per share: | ||||||
Weighted average shares used to compute basic net income/(loss) per share | 156,583 | 145,451 | 153,106 | 144,951 | ||
Dilutive potential common shares | 14,231 | 14,605 | ||||
Weighted average shares used to compute diluted net income/(loss) per share | 156,583 | 159,682 | 153,106 | 159,556 | ||
Basic net income/(loss) per share | $ (0.05) | $ 0.02 | $ (0.11) | $ 0.02 | ||
Diluted net income/(loss) per share | $ (0.05) | $ 0.02 | $ (0.11) | $ 0.02 |
Net Income_(Loss) Per Share - A
Net Income/(Loss) Per Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 22,923 | 6,941 | 22,923 | 6,941 |
Warrants to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 1,125 | 1,125 | ||
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 12,751 | 579 | 12,751 | 579 |
Restricted stock units ("RSUs") | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 5,889 | 8 | 5,889 | 8 |
Performance stock options ("PSOs") | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 2,800 | 3,382 | 2,800 | 3,382 |
Performance stock units ("PSUs") | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 2,972 | 2,972 | ||
Employee stock purchase plan ("ESPP") | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of diluted net loss per share | 358 | 358 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 133,316 | $ 95,540 | $ 240,590 | $ 191,425 |
Micro-Transactions | Over-time revenue recognition | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 116,907 | 82,659 | 212,846 | 166,203 |
Advertisements and offers | Point-in-time revenue recognition | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 16,374 | 12,864 | 27,703 | 25,194 |
Other | Point-in-time revenue recognition | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 35 | $ 17 | $ 41 | $ 28 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Contract Balances | |||
Receivables, which are included in accounts receivable, net | $ 64,658 | $ 29,304 | |
Contract assets | 0 | 0 | |
Contract liabilities, which are included in deferred revenue | $ 145,498 | $ 97,629 | $ 85,736 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contracts with Customers | ||||||
Deferred revenue | $ 145,498 | $ 145,498 | $ 97,629 | $ 85,736 | ||
Deferred revenue earned | $ 24,604 | $ 21,914 | $ 96,371 | $ 84,612 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains or losses from events or changes in circumstances that affect the fair value of investments | $ 0 | $ 0 |
Cash and cash equivalents | 283,057 | 127,053 |
Other Investments | 1,565 | 1,565 |
Total financial assets | 284,622 | 128,618 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 283,057 | 127,053 |
Total financial assets | 283,057 | 127,053 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments | 1,565 | 1,565 |
Total financial assets | $ 1,565 | $ 1,565 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Balance Sheet Components | |||||
Accounts receivable | $ 64,658,000 | $ 64,658,000 | $ 29,304,000 | ||
Accounts receivable, net | 64,658,000 | 64,658,000 | $ 29,304,000 | ||
Bad debts | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Value | $ 26,817 | $ 26,817 |
Accumulated Amortization Expense | (23,834) | (22,059) |
Total intangible assets | 2,983 | 4,758 |
Titles, content and technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 21,117 | 21,117 |
Accumulated Amortization Expense | (18,134) | (16,359) |
Total intangible assets | $ 2,983 | 4,758 |
Titles, content and technology | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated Useful Life | 3 years | |
Titles, content and technology | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated Useful Life | 5 years | |
Customer contracts and related relationships | ||
Finite-Lived Intangible Assets | ||
Estimated Useful Life | 5 years | |
Gross Carrying Value | $ 700 | 700 |
Accumulated Amortization Expense | $ (700) | (700) |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Estimated Useful Life | 7 years | |
Gross Carrying Value | $ 5,000 | 5,000 |
Accumulated Amortization Expense | $ (5,000) | $ (5,000) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cost of Goods and Services Sold, Depreciation and Amortization [Abstract] | |||||
Amortization expense, cost of revenues | $ 887 | $ 1,056 | $ 1,775 | $ 2,308 | |
Amortization of intangible assets | 887 | $ 1,056 | 1,775 | $ 2,308 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2020 (remaining 6 months) | 1,483 | 1,483 | |||
2021 | 1,500 | 1,500 | |||
Total intangible assets | 2,983 | 2,983 | |||
Goodwill | $ 116,227 | $ 116,227 | $ 116,227 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lease terms | ||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | false | |||
Longest extension option | 6 years | 6 years | ||
Rent expense | $ 1,712 | $ 653 | $ 2,883 | $ 2,004 |
ROU asset adjustment | $ 73 | $ 407 | ||
Minimum | ||||
Lease terms | ||||
Operating leases, remaining lease terms | 5 months | |||
Maximum | ||||
Lease terms | ||||
Operating leases, remaining lease terms | 7 years 5 months 1 day |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Noncancelable Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases | |
2020 (remaining 6 months) | $ 3,422 |
2021 | 7,104 |
2022 | 7,015 |
2023 | 6,980 |
2024 and thereafter | 27,667 |
Total lease payments | 52,188 |
Less imputed interest | (10,877) |
Total | $ 41,311 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Leases | ||
Weighted-average remaining non-cancelable lease term | 7 years 21 days | 7 years 21 days |
Weighted-average discount rate | 6.70% | 6.70% |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflow from operating leases | $ 1,320 | |
Right of use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 73 | $ 407 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Guaranteed Royalties (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Future unpaid minimum guaranteed royalty commitments | |
2020 (remaining 6 months) | $ 2,660 |
2021 | 10,829 |
2022 | 6,855 |
2023 | 6,690 |
2024 | 6,150 |
Total future unpaid minimum guaranteed royalty commitments | $ 33,184 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Indemnification Agreement | Digital Storefronts | ||
Indemnification Agreements [Abstract] | ||
Indemnification liability recorded | $ 0 | $ 0 |
Current and long-term liabilities | Agreements With Various Licensors | ||
Other agreements with commitments | ||
Other Commitment | $ 31,238 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants to Purchase Common Stock (Details) - Warrants to purchase common stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Number of Shares Outstanding Under Warrants | |||||
Warrants outstanding, beginning balance | $ 1,600 | ||||
Number of Shares Outstanding Under Warrant, Exercised | (475) | ||||
Warrants outstanding, ending balance | $ 1,125 | $ 1,125 | $ 1,600 | ||
Weighted Average Exercise Price Per Share | |||||
Weighted average exercise price, beginning balance | $ 4.61 | ||||
Weighted average exercise price, Exercised | 4.99 | ||||
Weighted average exercise price, ending balance | $ 4.46 | $ 4.46 | $ 4.61 | ||
Average Contractual Term (Years) | |||||
Warrants outstanding, Average Contractual term (Years) | 5 years 5 months 8 days | 5 years 5 months 8 days | |||
Average contractual term, Exercised | 5 years | ||||
Recognized expense with respect to warrants | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Follow-o
Stockholders' Equity - Follow-on Public Offering (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Follow-on Public Offering | |
Subsidiary, Sale of Stock [Line Items] | |
Shares issued | shares | 17,250 |
Offering price per share | $ / shares | $ 9.25 |
Aggregate gross proceeds | $ | $ 159,563 |
Net proceeds after underwriting fees and offering expenses | $ | $ 151,773 |
Follow-on Public Offering, over-allotment option | |
Subsidiary, Sale of Stock [Line Items] | |
Shares issued | shares | 2,250 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - shares shares in Thousands | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Jun. 30, 2020 | Apr. 30, 2020 | Apr. 30, 2018 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 6 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 10 years | |||
Performance stock options ("PSOs") | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 10 years | |||
Sixth Amendment 2007 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, reserved for future issuance | 7,000 | |||
2007 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock authorized for issuance, increased | 4,000 | |||
2018 Equity Inducement Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, reserved for future issuance | 400 |
Stock Incentive Plans - RSU and
Stock Incentive Plans - RSU and PSU Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Restricted stock units ("RSUs") | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded and unvested, Number of Units Outstanding, beginning balance | shares | 3,951 |
Granted, Number of Units Outstanding | shares | 3,013 |
Vested, Number of Units Outstanding | shares | (885) |
Forfeited, Number of Units Outstanding | shares | (190) |
Awarded and unvested, Number of Units Outstanding, ending balance | shares | 5,889 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 5.66 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 6.40 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 4.88 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 5.78 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ / shares | $ 6.15 |
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 8 months 23 days |
Exercisable, Aggregate Intrinsic Value | $ | $ 54,592 |
Performance stock units ("PSUs") | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded and unvested, Number of Units Outstanding, beginning balance | shares | 5,417 |
Vested, Number of Units Outstanding | shares | (276) |
Forfeited, Number of Units Outstanding | shares | (1,370) |
Awarded and unvested, Number of Units Outstanding, ending balance | shares | 3,771 |
Expected to vest, Number of Units Outstanding | shares | 1,625 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 6.06 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 3.61 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 6.85 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ / shares | 5.95 |
Expected to vest, Weighted Average Grant Date Fair Value | $ / shares | $ 5.56 |
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 2 months 26 days |
Expected to vest, Weighted Average Remaining Contractual Term (Years) | 7 months 17 days |
Aggregate Intrinsic Value | $ | $ 34,953 |
Expected to vest, Aggregate Intrinsic Value | $ | $ 15,068 |
Stock Incentive Plans - PSO and
Stock Incentive Plans - PSO and Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2020 | |
Performance stock options ("PSOs") | |
Number of Shares Outstanding, beginning balances | 6,583 |
Number of Shares Outstanding, Canceled | (1,377) |
Number of Shares Outstanding, Exercised | (948) |
Number of Shares Outstanding, ending balances | 4,258 |
Number of Shares Outstanding, expected to vest | 526 |
Number of Shares Outstanding, exercisable | 2,800 |
Weighted Average Exercise Price, beginning balance | $ 4.54 |
Weighted Average Exercise Price, Canceled | 6.18 |
Weighted Average Exercise Price, Exercised | 3.61 |
Weighted Average Exercise Price, ending balance | 4.21 |
Weighted Average Exercise Price, expected to vest | 3.60 |
Weighted Average Exercise Price, exercisable | $ 3.59 |
Weighted Average Remaining Contractual Term, ending balance | 7 years 6 months 10 days |
Weighted Average Remaining Contractual Term, expected to vest | 7 years 4 months 6 days |
Weighted Average Remaining Contractual Term, exercisable | 7 years 3 months 18 days |
Aggregate Intrinsic Value, ending balance | $ 21,531 |
Aggregate Intrinsic Value, expected to vest | 2,984 |
Aggregate Intrinsic Value, exercisable | $ 15,892 |
Stock Options | |
Number of Shares Outstanding, beginning balances | 16,288 |
Options granted, number of shares | 210 |
Number of Shares Outstanding, Canceled | (287) |
Number of Shares Outstanding, Exercised | (3,460) |
Number of Shares Outstanding, ending balances | 12,751 |
Number of Shares Outstanding, exercisable | 8,619 |
Weighted Average Exercise Price, beginning balance | $ 3.56 |
Options granted, weighted average exercise price | 9 |
Weighted Average Exercise Price, Canceled | 5.35 |
Weighted Average Exercise Price, Exercised | 3.36 |
Weighted Average Exercise Price, ending balance | 3.66 |
Weighted Average Exercise Price, exercisable | $ 3.28 |
Weighted Average Remaining Contractual Term, ending balance | 6 years 11 months 23 days |
Weighted Average Remaining Contractual Term, exercisable | 6 years 8 months 15 days |
Aggregate Intrinsic Value, ending balance | $ 71,487 |
Aggregate Intrinsic Value, exercisable | $ 51,668 |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Black-Sholes Valuation Assumptions | ||||
Expected term (years) | 4 years | |||
Stock Based Compensation Additional Details | ||||
Weighted-average fair value of stock options granted | $ 4.63 | $ 3.88 | $ 4.63 | $ 3.94 |
Minimum | ||||
Stock Based Compensation Additional Details | ||||
Contractual term | 6 years | |||
Maximum | ||||
Stock Based Compensation Additional Details | ||||
Contractual term | 10 years | |||
Performance stock options ("PSOs") | ||||
Stock Based Compensation Additional Details | ||||
Contractual term | 10 years | |||
Options to purchase common stock | ||||
Black-Sholes Valuation Assumptions | ||||
Risk-free interest rate | 0.28% | 2.07% | 0.28% | 2.15% |
Expected volatility | 69.30% | 56.10% | 69.30% | 56.10% |
Expected term (years) | 4 years | 4 years | 4 years |
Stock Incentive Plans - Stock-B
Stock Incentive Plans - Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 8,106 | $ 2,035 | $ 14,488 | $ 8,842 |
Reversal of stock based compensation expense | 2,526 | 2,526 | ||
Total compensation expense related to unvested awards not yet recognized | $ 49,025 | $ 49,025 | ||
Unrecognized compensation expense recognized over weighted average period | 1 year 5 months 19 days | |||
Quoted closing price of Company's common stock | $ 9.27 | $ 9.27 | ||
Cash proceed from option exercise, net | $ 14,873 | 860 | ||
25% of Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Vesting period | 1 year | |||
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 5,298 | 1,128 | $ 9,260 | 5,074 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,013 | 55 | 1,888 | 881 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,795 | $ 852 | 3,340 | $ 2,887 |
Options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total compensation expense related to unvested awards not yet recognized | 8,276 | $ 8,276 | ||
Restricted stock units ("RSUs") | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Vesting period | 4 years | |||
Vesting percentage on or around the one-year anniversary | 25.00% | |||
Total compensation expense related to unvested awards not yet recognized | 33,063 | $ 33,063 | ||
Unrecognized compensation expense recognized over weighted average period | 3 years 3 months 18 days | |||
Performance stock options ("PSOs") | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total compensation expense related to unvested awards not yet recognized | 638 | $ 638 | ||
Performance stock options ("PSOs") | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Unrecognized compensation expense recognized over weighted average period | 7 months 17 days | |||
Performance stock units ("PSUs") | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 486 | $ 630 | ||
Total compensation expense related to unvested awards not yet recognized | $ 7,048 | $ 7,048 |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Taxes | |||||
Income tax (benefit) expense | $ (6,187) | $ 0 | $ (7,508) | $ 178 | |
Unrecognized tax benefits | $ 16,440 | $ 16,440 | $ 15,084 |
Segment Information and Opera_3
Segment Information and Operations by Geographic Area - Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Long-lived assets (primarily consist of property and equipment) | ||||
Number of Operating Segments | segment | 1 | |||
Revenues | $ 133,316 | $ 95,540 | $ 240,590 | $ 191,425 |
United States of America | ||||
Long-lived assets (primarily consist of property and equipment) | ||||
Revenues | 104,377 | 73,835 | 188,385 | 146,703 |
Americas, excluding the United States | ||||
Long-lived assets (primarily consist of property and equipment) | ||||
Revenues | 7,827 | 5,979 | 14,447 | 12,197 |
EMEA | ||||
Long-lived assets (primarily consist of property and equipment) | ||||
Revenues | 14,715 | 10,902 | 26,573 | 22,430 |
APAC | ||||
Long-lived assets (primarily consist of property and equipment) | ||||
Revenues | $ 6,397 | $ 4,824 | $ 11,185 | $ 10,095 |
Segment Information and Opera_4
Segment Information and Operations by Geographic Area - Long-Lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | $ 17,779 | $ 17,643 |
United States of America | ||
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | 16,812 | 16,738 |
Rest of the World | ||
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | $ 967 | $ 905 |